Correlation Between Hologic and ATRION
Can any of the company-specific risk be diversified away by investing in both Hologic and ATRION at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hologic and ATRION into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hologic and ATRION, you can compare the effects of market volatilities on Hologic and ATRION and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hologic with a short position of ATRION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hologic and ATRION.
Diversification Opportunities for Hologic and ATRION
Very good diversification
The 3 months correlation between Hologic and ATRION is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hologic and ATRION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRION and Hologic is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hologic are associated (or correlated) with ATRION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRION has no effect on the direction of Hologic i.e., Hologic and ATRION go up and down completely randomly.
Pair Corralation between Hologic and ATRION
Given the investment horizon of 90 days Hologic is expected to generate 0.21 times more return on investment than ATRION. However, Hologic is 4.8 times less risky than ATRION. It trades about 0.02 of its potential returns per unit of risk. ATRION is currently generating about -0.04 per unit of risk. If you would invest 7,380 in Hologic on August 28, 2024 and sell it today you would earn a total of 593.00 from holding Hologic or generate 8.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.46% |
| Values | Daily Returns |
Hologic vs. ATRION
Performance |
| Timeline |
| Hologic |
| ATRION |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hologic and ATRION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hologic and ATRION
The main advantage of trading using opposite Hologic and ATRION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hologic position performs unexpectedly, ATRION can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ATRION will offset losses from the drop in ATRION's long position.| Hologic vs. Haemonetics | Hologic vs. ICU Medical | Hologic vs. Envista Holdings Corp | Hologic vs. The Cooper Companies, |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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